Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q3 FY2010 Earnings Presentation
40 slides from Frasers Centrepoint Trust's earnings presentation, Jul 23, 2010
Slide 1: Frasers Centrepoint Trust 3rd Quarter FY10 results
Frasers Centrepoint Trust 3rd Quarter FY10 results 23 July 2010
Slide 2: Important notice
Important notice 2 Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statement and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual re
Slide 3: Agenda
Agenda 3 Results Balance sheet & operational performance Sponsor’s retail assets Asset enhancement initiatives Summary
Slide 4: Results
Results
Slide 5: Record 3Q10 results
Results 5 Record 3Q10 results Y-o-Y Apr - Jun 10 (S$ ‘000) 3Q10 Highlights Change (%) • improved Northpoint performance post enhancement Gross Revenue 30,695 45% and maiden contributions from Northpoint 2 & YewTee Point • due to consolidation of Northpoint 2 & YewTee Point Less Property Expenses 9,1
Slide 6: 3Q10 results by property
Results 6 3Q10 results by property Gross revenue S$ m 45% 30.7 21.2 2% 14.8 14.5 3Q10 45% 7.0 2% 4.8 3.8 3Q09 2.0 1.9 3.1 FCT Portfolio CWP NP ACP NP2 YTP Net property S$ m 46% income 21.5 14.7 2% 10.5 10.3 51% 3Q10 5.2 6% 3.4 2.8 1.1 1.0 2.1 3Q09 FCT Portfolio CWP NP ACP NP2 YTP
Slide 7: Record 9M FY10 results
Results 7 Record 9M FY10 results Oct 09 - Jun 10 Y-o-Y 9M FY10 Highlights (S$ ‘000) Change (%) 33% • improved Northpoint performance post enhancement Gross Revenue 82,251 and maiden contributions from Northpoint 2 & YewTee Point • due to consolidation of Northpoint 2 & YewTee Point Less Property Exp
Slide 8: 9M FY10 results by property
Results 8 9M FY10 results by property Gross revenue S$ m 33% 82.3 3% 61.8 44.9 43.8 66% From 5 Feb 10 9M FY10 20.4 4% 12.3 9M FY09 5.9 5.7 6.1 4.9 FCT Portfolio CWP NP ACP NP2 YTP Net property S$ m 37% income 57.8 42.3 1% 31.8 31.5 99% From 5 Feb 10 9M FY10 15.1 8% 7.6 3.4 3.1 4.3 3.3 9M FY09 FCT Po
Slide 9: FCT outperformed forecast
Results 9 FCT outperformed forecast 5 Feb – 30 Jun 10 Actual Forecast1 Change (%) Gross Revenue 49,730 47,476 5% 14945 4% Less Property Expenses 14,368 Net Property Income 35,362 32,531 9% Income available for distribution 27,521 24,473 13% DPU2 3.59¢ 3.22¢ 12% 1. Refers to the Profit Forecast as se
Slide 10: Actual results vs forecast by property
Results 10 Actual results vs forecast by property Gross revenue S$ m 5% New acquisitions 49.7 47.5 4% outperformed forecast 38.8 37.2 Actual (5 Feb – 30 Jun) 7% 6% 6.1 5.6 4.9 4.6 Forecast1 (5 Feb – 30 Jun) FCT Portfolio CWP + NP + ACP NP2 YTP Net property S$ m 9% income 35.4 8% 32.5 27.7 25.7 Actua
Slide 11: Rising DPU trend
Results 11 Rising DPU trend Quarterly DPU payout trend Year-on-year comparison DPU (¢) Y-o-Y 2.04 3Q10 3Q09 Change 0.10 (%) 1.94 2.06 2.07 DPU 2.07 1.94 7% 9.4% 1.94 1.91 3Q09 4Q09 1Q10 2Q10 3Q10 Income retained from previous quarters
Slide 12: Distribution details
Results 12 Distribution details Distribution period 1 Apr to 30 Jun 2010 DPU 2.07¢ Ex-date 29 Jul 2010 Books closure date 2 Aug 2010 at 5 pm Payment date 27 Aug 2010
Slide 13: Balance sheet & operational performance
Balance sheet & operational performance
Slide 14: Balance sheet summary
Balance sheet & operational performance 14 Balance sheet summary As at 30 June 2010 Total assets $1,472m Net assets $950m Total units in issue1 766,943,680 NAV per unit2 $1.24 1. Excludes 332.892 issuable units in partial payment of 3Q10 mgmt fees. 2. Computed on the basis of 767,276,572 units, incl
Slide 15: Robust capital structure
Balance sheet & operational performance 15 Robust capital structure Debt information Debt expiry profile 260 As at 30 June 2010 S$ m Gearing ratio 31.2% 75 55 Interest cover1 4.43 x 45 25 Cost of debt (weighted) 3.76% 2010 2011 2012 2013 2014 2015 Total debt S$460m Type RCF CMBS MTN MTN - MTN Corpor
Slide 16: Healthy rental reversions
Balance sheet & operational performance 16 Healthy rental reversions Net Lettable Area 3Q10 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point1 4 2,050 0.5% 4.1% 8.3% Northpoint - - - - Anchorpoint 3 1,407 2.0% 0.7% 9.0% Northpoint 2 - - - - YewTee Poi
Slide 17: Healthy rental reversions
Balance sheet & operational performance 17 Healthy rental reversions Net Lettable Area 9M FY10 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point1 14 48,706 11.6% 4.1% 5.2% Northpoint - - - - Anchorpoint 10 5,603 7.8% 0.7% 2.7% Northpoint 2 - - - - Yew
Slide 18: Rising portfolio occupancy
Balance sheet & operational performance 18 Rising portfolio occupancy 98.6% 99.4% 99.4% 97.3% FCT portfolio occupancy Occupancy1 Sep 09 Dec 09 Mar 10 Jun 10 Causeway Point 99.9% 100.0% 100.0% 100.0% Northpoint 89.9% 95.1% 98.5% 98.6% Anchorpoint 97.3% 97.9% 97.7% 98.6% Northpoint 2 - - 100.0% 100.0%
Slide 19: Healthy occupancy costs
Balance sheet & operational performance 19 Healthy occupancy costs Occupancy costs 3Q10 turnover rent contribution Turnover rent Jan - May 2010 5% FCT (weighted average) 13.8% Gross revenue Industry 16 – 17%
Slide 20: 98% of gross rental income locked-in for FY10
Balance sheet & operational performance 20 98% of gross rental income locked-in for FY10 Lease expiry profile (as at 30 Jun 2010) Weighted avg lease term to expiry By NLA 1.61 yrs 37% 42% 17% By Gross rent 1.47 yrs 2% 2% Expiries as % of total gross rental income FY10 FY11 FY12 FY13 FY14 Number of l
Slide 21: Sponsor's retail assets
Sponsor’s retail assets
Slide 22: Highlights of sponsor's retail assets
Sponsor’s retail assets 22 Highlights of sponsor’s retail assets Changi City Point The Centrepoint Bedok Point NLA (sf) MRT station Est. completion Est. catchment population Bedok Point 81,017 Bedok 2H10 129,100 Changi City Point 207,419 Expo 2H11 600,000 The Centrepoint 395,315 Somerset Completed 4
Slide 23: Bedok Point on track to receive TOP by 2H 2010
Sponsor’s retail assets 23 Bedok Point on track to receive TOP by 2H 2010 Bedok Point NLA 81,017 Construction status 87% completed Leasing status > 90% Expected completion 2H 2010 Site progress update Target acquisition CY2011 Artist’s impression
Slide 24: Asset enhancement initiatives
Asset enhancement initiatives
Slide 25: Strong track record of successful enhancement initiatives
Asset enhancement initiatives 25 Strong track record of successful enhancement initiatives Financials Anchorpoint Northpoint Average rent per sf/mth 41% 20% Net property income 106% 30% Incremental net property income S$1.8m S$4.1m Capex S$12.8m S$38.6m ROI 14.1% 10.7% Capital value of AEI (5.75% ca
Slide 26: Anchorpoint's performance surpassed income forecast
Asset enhancement initiatives 26 Anchorpoint’s performance surpassed income forecast NPI (S$ ‘000) Occupancy (%) 100% 100% 100% 94% 95% 99% 93% 97% 98% 98% 99% 93% 89% 1,125 1,188 1,038 1,090 1,097 971 924 853 838 821 875 43% 52% 39% 360 308 372 172 -303 -365 1 1 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3
Slide 27: Northpoint's performance surpassed income forecast
Asset enhancement initiatives 27 Northpoint’s performance surpassed income forecast NPI (S$ ‘000) Occupancy (%) 100% 95% 99% 99% 90% 84% 83% 72% 75% 5,340 5,163 4,580 4,500 52% 3,789 3,583 48% 3,569 3,425 3,456 2,546 2,542 1,606 1 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Forecast2 Enha
Slide 28: Causeway Point AEI Summary
Asset enhancement initiatives 28 Causeway Point AEI Summary • Downsize space occupied by anchor tenants • Expand depth of retail offerings & create F&B from 65% to 50% of total NLA precinct on L5 • Shift escalators on B1 & L1 to improve visual • Introduce pro-family features sight-lines & release pr
Slide 29: Basement 1 Enhancement works
Asset enhancement initiatives 29 Basement 1 Enhancement works Before AEI 1. Anchor space to be subdivided 1 3 2. Escalators to be relocated to improve visibility & create retail space 3. Space to be configured to enhance sight-lines 2 Before AEI After AEI After AEI
Slide 30: Level 1 Enhancement works
Asset enhancement initiatives 30 Level 1 Before AEI Enhancement works 1. Anchor space to be subdivided 1 2. Escalators to be removed to improve visibility & create retail space Before AEI 2 After AEI After AEI
Slide 31: Level 2 Enhancement works
Asset enhancement initiatives 31 Level 2 Enhancement works Before AEI 1. Provision of F&B to enhance traffic flow 3 2. Space to be decanted to create play area 1 3. Anchor space to be subdivided to create specialty space 2 Before AEI After AEI After AEI
Slide 32: Level 3 Enhancement works
Asset enhancement initiatives 32 Level 3 Enhancement works Before AEI 1. Retail space to be created by transferring GFA 2. Space to be decanted 1 3 3. Retail space to be created by transferring GFA 2 After AEI After AEI
Slide 33: Level 4 Enhancement works
Asset enhancement initiatives 33 Level 4 Enhancement works Before AEI 1. Create new food court 1 After AEI After AEI
Slide 34: Level 5 Enhancement works
Asset enhancement initiatives 34 Level 5 Enhancement works Before AEI 1. Convert enclosed area to F&B Precinct 1 Before AEI After AEI After AEI
Slide 35: Level 7 Enhancement works
Asset enhancement initiatives 35 Level 7 Enhancement works Before AEI 1. Space to be decanted to create wet playground Before AEI 1 After AEI After AEI
Slide 36: Causeway Point AEI to span 30 months
Asset enhancement initiatives 36 Causeway Point AEI to span 30 months Timeline1 Level Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 L1 L2 L3 B1 L4 L5 1. Indicative timing, subject to changes.
Slide 37: AEI to add S$162 million to Causeway Point's capital value
Asset enhancement initiatives 37 AEI to add S$162 million to Causeway Point’s capital value Financials Projected Before AEI Change after AEI Through reconfiguring big boxes & Average rent per sf S$10.2 S$12.2 20% improving tenant mix NPI S$42.2m S$51.5m 22% Incremental NPI of S$9.3m Capex - S$71.8m
Slide 38: Summary
Summary
Slide 39: FCT gaining growth momentum
Summary 39 FCT gaining growth momentum Growth drivers • Positive YTD rental reversions of 5% Organic growth • Healthy portfolio occupancy cost of 14% • Contributions from Northpoint 2 & YewTee Point Acquisition growth • Target acquisition of Bedok Point in CY2011 • Northpoint outperforming income fo
Slide 40: Thank you
Thank you Analyst & media contact: Goh Chat-Shen, CFA Investor Relations Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: james.goh@fraserscentrepoint.com Web: www.fraserscentrepointtrust.com
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